Take a look at this example from the rear display of a 5D2. You will see small areas of the preview image "blinking", which indicates overexposed (clipped) areas of the image.
http://a.img-dpreview.com/reviews/CanonEOS5DMarkII/Images/Screens/highlights.gif
Personally I am usually happy to see just a hint of clipping, especially in non-critical areas of the image, because that means I have achieved my goal of a nice "ETTR" exposure. Expect to find blinkies appearing when you have light sources - e.g. street lamps - within the composition, or bright reflections off chrome, glass etc.. They sometimes can't be avoided and you should not always try to avoid them.
If I was shooting a snow scene at a ski resort, for example, I would be looking to nudge my exposure right up to the right hand edge of the histogram, and I might expect to see blinkies appearing on things like parts of the metalwork from chairlift pylons, or small patches of sunlit snow that just caught the light in a certain way.
Here's an example of such a scene....
I shot around 140 exposures in 40 minutes at this location and, once I had my manual exposure set up (took two test shots to establish) to give this sort of histogram, and the merest hint of clipping in the snow, I did not have to adjust my exposure at all for the whole session. The light didn't change and my exposure didn't need to either. If I had used autoexposure it would have been all over the place depending on the proportions of snow vs sky in each shot, and also what the jumpers were wearing. Manual exposure saved me a lot of grief and time editing and the histogram and blinkies confirmed that I had my exposure right where I wanted it. Of course, double checking every 10 minutes or so did no harm, but no adjustments were needed.